Flaherty wasn't specific about the new Conservative government's long-term plans to address the equalization issue, but he did appear to leave the door open to the possibility that Ottawa's side deals with the two Atlantic provinces could be scrapped or amended.Now, it's always fun to see this type of hair-splitting based on a politician having spoken merely in innuendos. And it's hard to see what second equalization program Flaherty could be talking about.
"Right now we have two equalization formulas that the previous government is firmly committed to - both of them," he said with a chuckle. "So you start there. We can't be firmly committed to two equalization programs."
The minister issued a statement late Friday night denying that he suggested the deals could be eliminated, calling such reports "factually incorrect and misleading."
The statement notes Flaherty didn't mention Nova Scotia or Newfoundland and Labrador specifically "or use the words oil and gas" during Friday's news conference.
But let's leave that aside, and note that the retraction may put Flaherty in an even less tenable position. Having declared that the current system is a non-sensical mess, has he now said that there's no possibility of even suggesting any changes? Does that mean that he is indeed firmly committed to preserving a two-formula system? And if so, shouldn't we be trying to replace him with a finance minister who will actually clean up a mess rather than ignoring it for political reasons?
On the most generous possible reading, I suppose one could argue that Flaherty is merely trying to say that he's said absolutely nothing about equalization. But in that case, it's hard to see why he's making so much effort to comment publicly on an issue about which he has nothing to say.
In any event, it sounds like it's time for another communications director to get the axe. But the good news is that as long as Flaherty is determined to do nothing on equalization, he should have a bit more time available to find someone to craft a vaguely logical message for him.
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